Budget 'nudges' in the right directions

But much bolder and comprehensive reforms are needed

Modi 3.0’s first post-election Budget has tried to acknowledge the messages that the voters sent. Its focus on employment and skilling, rural distress, and small and medium enterprises, as well as the need to address factor-market distortions in labour and land, suggests this. It has maintained the priority on infrastructure that was the hallmark of budgets in Modi 2.0. And it does all this with further fiscal consolidation. These are all changes in the right direction. But will the multiple proposals and schemes announced be enough? My take is that much bolder and comprehensive reforms are needed.